for that let s bring in cnbc s reporter joining us live from london. investors looking at more corporate earnings as well as key inflation readings this week. how s the market shaping up on the first hours of this monday morning? yeah. pt suddenly some nervous training. good morning. it s been a week where we ve had to take in some earnings numbers that have shaped the market. we got on friday the nonfarm payrolls numbers or the unemployment figures, right? the expectation was that 200,000 jobs would have been created in the month of july. in fact, it was only 187,000 jobs that were created, which means that the u.s. economy is clearly cooling off ever so slightly or not growing as robustly as perhaps the fed would like. it does mean that the impact of those higher interest rates is beginning to take shape and get into the market. so it might get the fed to
big banks boost their interest earnings and you saw that in the earnings numbers. i think looking out over the rest of this year is quite likely that these big banks, and we will see some more this week, are experiencing experiencing the picken earnings and if we look out over the year there are some some flowers on the outlook for the banking sector. what are the storm clouds, the pressure plates, as you have called them. it pressure plates, as you have called them. pressure plates, as you have called them. it is getting down to the fact called them. it is getting down to the fact that called them. it is getting down to the fact that interest - to the fact that interest rates, the fed funds rate and the policy rate is at a very policy level, is restrictive for the economy and is going to stay at an elevated level for some time. we will probably see another hike. that will exacerbate some of the deposit like we have seen so far, particularly from the small and mid banks that will
been some flight to safety from depositors who are looking to put their cash or bank they know will pay the back, that really has helped those big banks boost their net interest earnings and you saw that in the earnings numbers. i think looking out over the rest of this year it s quite likely that these big banks, and we will see some more this week, are experiencing, they are peaking in earnings, and if we look out over the rest of the year there are more storm clouds on the outlook that could be really challenging for the banking sector. the banking sector. what are the banking sector. what are the storm the banking sector. what are the storm clouds, the banking sector. what are the storm clouds, the - the banking sector. what are l the storm clouds, the pressure points, as you have called them. it points, as you have called them. , ., , points, as you have called them. , . , ., them. it is really getting down to the fact them. it is really getting down to the fact that them
the us have reported their results for the first quarter. j. p. results for the first quarter. j.p. morgan said wales fargo released earnings that beat expectations on friday. they are have been growing fears of the health of the financial sector since the recent banking turmoil in the united states and europe. we will find out how other major lenders spared later this week. really i spoke with isaac poole, and he told me that although the latest results have been good, earnings may have peaked. they are aood earnings may have peaked. they are good results earnings may have peaked. they are good results for earnings may have peaked. tie: are good results for what are amongst the biggest banks in the us. we see that there has been some flight to safety from depositors looking to put their cash with things they know will be able to pay that back. and that has really helped those big banks boost their interest earnings and you saw that in the earnings numbers. i think looking out over
the tone a little bit for this morning s trading picture as we open up things again for what was the christmas holiday. yes, we did see the s&p 500 go down, but some positivity is filtering through the market today. we are expecting inflation numbers. that s coming out tomorrow that will be very key and ppi numbers as well that s expected on thursday that might give direction as well to whether the fed will stop hiking interest rates or maybe there s a few more down the road of course the job numbers as i say are very critical and plus we have earnings numbers coming out this week, first quarter financial results coming out of the three major banks, jp morgan chase, wells fargo, as well as citi group and the biggest health company as well, and that means united health group also set to report and that s coming out on friday. meanwhile chinese tech giant alibaba set to rollout its own ai across all its products tell us more about that. yeah, so this becomes very interesting, right,